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Reckitt Benckiser Group
(OTC:RBGLY)
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Rating:67Neutral
Price Target:
$15.00
â–²(13.64% Upside)
Action:Reiterated
Date:07/29/26
The score is anchored by moderate financial performance (profitability intact but revenue and cash-flow momentum have weakened and leverage is meaningful). The latest earnings call was net constructive with reiterated guidance and Q2 acceleration, while valuation is supportive due to a modest P/E and high dividend yield. Technically, shares show improving short-term trend but remain below the 200-day average, tempering upside confidence.
Positive Factors
Emerging markets growth
Sustained double-digit growth in China and strong emerging markets performance diversify revenue and support structurally higher growth than developed markets. This durable geographic mix provides a multi-year runway for volume, pricing power and margin expansion as developed-market headwinds persist.
Negative Factors
Elevated leverage
Meaningful leverage reduces financial flexibility and increases vulnerability to cash-flow shocks or higher interest rates. With debt at scale, sustained free cash flow is required to de-lever; any sustained revenue or margin weakness would constrain capital allocation and heighten refinancing risk over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Emerging markets growth
Sustained double-digit growth in China and strong emerging markets performance diversify revenue and support structurally higher growth than developed markets. This durable geographic mix provides a multi-year runway for volume, pricing power and margin expansion as developed-market headwinds persist.
Read all positive factors
Reckitt Benckiser Group (RBGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.02B
Dividend Yield8.71%
Average Volume (3M)20.41K
Price to Earnings (P/E)11.5
Beta (1Y)0.08
Revenue Growth1.15%
EPS Growth142.06%
CountryUS
Employees38,100
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.88
Shares Outstanding3,175,036,100
10 Day Avg. Volume0
30 Day Avg. Volume20,409
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)5.08
Price to Sales (P/S)2.83
P/FCF Ratio22.79
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.40Price Target Upside9.09% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.9
Revenue Forecast (FY)$17.36B
Reckitt Benckiser Group Business Overview & Revenue Model
Company Description
Reckitt Benckiser Group Plc engages in the manufacture and trade of consumer brand products including Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Durex, Enfamil, Finish, Gaviscon, Harpic, Lysol, Mortein, Mucinex, Nurofen, Nutramigen, Strepsi...
How the Company Makes Money
Reckitt primarily makes money by selling branded consumer packaged goods (CPG) to customers worldwide. Revenue is generated through (1) Consumer Health: sales of over-the-counter health, wellness, and self-care products (e.g., analgesics, cold/flu...
Reckitt Benckiser Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
The call conveyed a constructive tone driven by clear Q2 acceleration, strong emerging market execution and successful innovation launches, supported by disciplined cost actions under the Fuel for Growth program and active shareholder returns. Material lowlights remain: the dilutive impact of the Essential Home divestment (pressuring EPS and operating profit), gross margin headwinds from higher input costs and commodity volatility, weakness in Household Care/Auto Dish and some developed-market softness. Management reiterated guidance and emphasized confidence in mitigation plans, leaving the narrative net positive but balanced by identifiable execution and macro risks.Positive Updates
Q2 Acceleration and Revenue Growth
Core Reckitt like-for-like net revenue grew 2.7% in H1 with a stronger Q2 performance of 4.2%; Group (Core Reckitt + Mead Johnson) like-for-like net revenue grew 2.6% in H1 with Q2 at 4.7%.
Negative Updates
Gross Margin Pressure and Input Cost Headwinds
Core Reckitt gross margin was 60.9%, down 110 bps year-on-year; Group (Core Reckitt & Mead Johnson) gross margin was 60.5%, 50 bps lower YoY. Management cited increased input costs and commodity volatility (impacted by the Middle East war) as drivers.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Acceleration and Revenue Growth
Core Reckitt like-for-like net revenue grew 2.7% in H1 with a stronger Q2 performance of 4.2%; Group (Core Reckitt + Mead Johnson) like-for-like net revenue grew 2.6% in H1 with Q2 at 4.7%.
Read all positive updates
Company Guidance
Management reiterated full‑year guidance for Core Reckitt of 4–5% like‑for‑like net revenue growth and adjusted operating profit margin of 24.9–25.6% (Core Reckitt & Mead Johnson), expecting a significantly stronger second half; H1 saw group like‑for‑like net revenue +2.6% (Core Reckitt +2.7%) with Q2 acceleration to +4.7% group / +4.2% Core Reckitt, H1 adjusted EPS 152.1p (‑9.7% y/y), H1 free cash flow £419m and net debt/EBITDA 2.5x. The company expects emerging markets to deliver H2 growth similar to H1, Europe to return to like‑for‑like growth in H2, North America to be stronger and weighted to Q4, and seasonal OTC incidence to be slightly higher than the prior season; it reiterated Fuel for Growth targets (fixed costs below 19% of net revenue by end‑2027), with program cost ~£1bn (≈£350m in 2026), announced a new £500m 12‑month buyback, increased the interim dividend by 5%, and noted continued actions to mitigate volatile commodity costs.Reckitt Benckiser Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.64B | 13.89B | 14.17B | 14.61B | 14.45B | 13.23B |
| Gross Profit | 8.11B | 8.44B | 8.60B | 8.76B | 8.36B | 7.69B |
| EBITDA | 4.53B | 4.61B | 2.96B | 3.19B | 3.65B | 3.02B |
| Net Income | 2.87B | 3.11B | 1.43B | 1.64B | 2.33B | -32.00M |
Balance Sheet | ||||||
| Total Assets | 24.28B | 25.02B | 25.30B | 27.14B | 28.74B | 26.95B |
| Cash, Cash Equivalents and Short-Term Investments | 872.70M | 1.95B | 760.00M | 1.39B | 1.16B | 1.26B |
| Total Debt | 10.10B | 8.42B | 8.66B | 8.54B | 8.88B | 9.56B |
| Total Liabilities | 18.61B | 17.26B | 18.58B | 18.67B | 19.26B | 19.49B |
| Stockholders Equity | 5.64B | 7.73B | 6.70B | 8.45B | 9.44B | 7.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.56B | 1.72B | 2.22B | 2.19B | 1.95B | 1.32B |
| Operating Cash Flow | 2.12B | 2.25B | 2.68B | 2.64B | 2.40B | 1.70B |
| Investing Cash Flow | 1.12B | 1.17B | -396.00M | -466.00M | -139.00M | 239.00M |
| Financing Cash Flow | -3.24B | -2.38B | -2.71B | -1.81B | -2.38B | -2.29B |
Reckitt Benckiser Group Technical Analysis
Positive
13.20
Price Trends
13.11
Positive
12.93
Positive
14.19
Negative
Market Momentum
0.25
Positive
54.83
Neutral
0.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Positive. The current price of 13.2 is below the 20-day moving average (MA) of 13.73, above the 50-day MA of 13.11, and below the 200-day MA of 14.19, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 0.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLY.
Reckitt Benckiser Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $336.00B | 21.41 | 29.84% | 2.91% | 3.26% | 1.15% | |
75 Outperform | $24.03B | 32.47 | 17.78% | 1.23% | 2.69% | 46.04% | |
70 Outperform | $134.02B | 20.80 | 35.40% | 3.71% | -17.45% | 8.84% | |
67 Neutral | $44.02B | 11.47 | 42.87% | 6.97% | 1.15% | 142.06% | |
64 Neutral | $36.71B | 18.77 | 122.57% | 4.63% | -12.19% | -19.22% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $73.30B | 36.14 | 631.14% | 2.31% | 5.24% | -29.04% |
* Consumer Defensive Sector Average
RBGLY
Reckitt Benckiser Group
13.86
-0.40
-2.79%
CHD
Church & Dwight
101.30
9.69
10.57%
CL
Colgate-Palmolive
91.95
9.75
11.86%
KMB
Kimberly Clark
110.39
-14.81
-11.83%
PG
Procter & Gamble
144.55
-6.72
-4.44%
UL
Unilever
62.09
-1.38
-2.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.